The daily herald. [volume] (Honolulu, Hawaiian Islands) 1886-1887, 1887-04-07
THURSDAY, APRIL 7, 1887.
THE HAWAIIAN LOAN.

EDITOR BULLETIN; In your ISSUE
of the 18th inst. was an editorial article
accounting for the failure Of the $4,000,
600 loan recently authorized by the
Hawaiian Government 1t is not
strange that the writer of the article
should have assumed the failure for
which he sought good reasons, for the
statement has recently been made by
so many San Francisco journals and in
so many forms, that any one not APP
prised of the influences at work to pro-
duce thlt impression could hardly fail
to be misled. And here let me say
that | do not wish to imply, for do
not believe, that the Bulletin is accessi
BILE to these influences, except through
error. Yet error in capable and
honest journal may do great injustice
and be more mischievous, than willfu
falsehood in a journal Of the other sort.
My relation to the matter Of the Ha-
waiian loan is slight but of such a char.
acter as to give me pretty accurate
knowledge Of the facts, and a personal
interest in having them truthfully set
forth. | am the brother of the man
(Col. G.. w. Macfarlane) appointed by
the Hawaiian Government to nego.
tate it.
The Hawaiian loan has not failed.
1t would be difficult to mention any
recent financial operation that has met
with a more immediate and conspicu-
Gus success. On the day of Col. Mac. |
farlane's departure from the Islands to
place this loan in London he offered
100000 Of the bonds in Honolulu,
and nearly 100000 were almost in.
SANITY subscribed; but the amount
offered was all that was allotted.
Shortly aferward the house Of Mathie-
son & Co. of London offered in that
market two-thirds of the remaining
bonds ($aoo,ooo) and applications
we're made for something like twenty
one times the amount-the allotment
in this instance, as in the other, being
made pro rata. If this is failure, it is
not easy to conjecture what success
would be.
/ saw it stated in one Of the many
local papers which have been develop
ing so unusual an interest IN this mat
ter lately, that the public did not sub
scribe for any Of these bonds, and that
"the syndicate" had been obliged to
take the whole amount themselves.
The syndicate took none-the entire
offering were taken by the public at %
per cent, and the bonds at once ad
vanced to premium, and have sold in
the London market as high as 1881.
The last quotation that | saw in the
London Hnandai Macs was 100 al
Io7. If this is Failure" the vocabu-
larry of the English language should be
rewritten.
There remains to be offered on
rising market only $500, ooo-one-
fourth. AS about one-half the whole |
lean is to be applied, under the Act,
to nothing more urgent than the con
struction of public works, the neces-
sity of haste in offering the remaining
one-quarter is not apparent.
Nearly month ago the sum OF
2Ioo, 900, a product Of this loan, was
received by the Bank of California with |
which to pay some bonds of a former
issue owned, though it would appear
not all controlled, by one of San Fran
cisco's leading business men, Claus
Spreckels. Mr. Spreckels has received |
from the Government at Honolulu a
draft for the portion Of these bonds
$500, ooo) which he was able to pre-
sent, and the balance, presume, awaits
his convenience. His open account
against the Islands, amounting to more
than $500, 900, and bearing 9 per cent,
interest, was long ago paid with money
obtained by the new loan at 6 per cent
The success Of this loan can, therefore,
be attested by at least one man having
accurate knowledge of the fact, and
himself we'll known. In the editorial
article already mentioned you say, and
justly say; "The bonds, if they are
issued, should be placed in this
country" That was the feeling /
think, of every man in Honolulu having
official connection with the matter.
know that it was the feeling of the
King, his Ministers and Colonel Mac
farlane. Indeed, this is a point which
the American sentiment pervading the
social, commercial and political fabric
of Hawaii makes 1t superAuous to
affirm. Why then was the loan not
placed here
The answer to this involves con-